Solyndra, the failed solar panel maker, received court approval on Monday for its plan to repay creditors after a bankruptcy judge overruled objections by the U.S. government.
The government, which said it may appeal the ruling, had said the plan improperly provided $341 million in tax breaks to venture capital investors Argonaut Private Equity and Madrone Capital Partners.
In approving the company's proposal, U.S. Bankruptcy Judge Mary Walrath in Delaware said the government had failed to prove the primary purpose of the plan was to preserve tax benefits for the investors.
The U.S. government may decide to appeal, said Anne Oliver, an attorney for the Internal Revenue Service. At Oliver's request, Walrath delayed the repayment plan from going into effect for 10 days.